It's looking more likely that Apple will upgrade the iPhone's screen in a major way in 2018

Homma poses in front of the company's logo at its headquarters in TokyoThomson Reuters

Japan Display Inc said it will begin mass production of organic light emitting diode (OLED) panels in 2018, aiming to catch up with Korean rivals amid speculation Apple Inc may adopt such screens for its iPhones soon.

The announcements also comes as Innovation Network Corporation of Japan (INCJ), Japan Display's biggest shareholder and state-backed fund, is in talks to invest in Sharp Corp and merge its display unit with Japan Display, according to sources.

Media reports say Apple may adopt OLED technology for its iPhone as early as in 2018, with LG Display and the panel-making unit of Samsung Electronics Co Ltd likely to be considered as supplier candidates.

OLED screens do not require backlights and can therefore be thinner or curved, but their manufacturing costs are for now higher than conventional liquid crystal display panels.

Japan Display was formed in a government-backed deal in 2012 from the ailing display units of Sony Corp, Toshiba Corp and Hitachi Ltd.

(Reporting by Makiko Yamazaki; Editing by Miral Fahmy)

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